New York Real Estate Agency Disclosure - I Ain't Signing No Stinkin' Form!!

By
Real Estate Agent with Douglas Elliman Real Estate in Babylon NY

New York Real Estate Agency Disclosure

I Ain't Signing No Stinkin' Form!!

As a Realtor, I do open houses for clients and also other agents as a favor when they are stuck.

New York State requires us Realtors to give buyers the Agency Disclosure form to let them know that Realtors work for the seller, what a Buyer's Agent is and it also explains Dual Agency.

I am amazed at how many consumers do not understand what this all means. They automatically think they are signing a contract. It is NOT a contract.

Lately, I'm coming across many buyer's who are reluctant to sign this form. When I ask them how many open houses have they attended, they state "quite a few". Really? You have never been asked by a Realtor to sign this form? NO!

That boggles my mind.

It's our job to have you read and sign this form. New York State requires us to do this. New York State will also send out testers to our Open Houses to see if we are complying. If we are not, we WILL be fined, no questions asked.

We also have a Refusal Form for buyers to sign. When a buyer sees this form, they will sign the Agency Disclosure Form.

As a Buyer, you have the right to representation. You have the right to be informed of this. You have the right to make informed decisions regarding your relationship with Realtors and Brokers.

Below is the form from New York State. If you have any questions or concerns, feel free to contact the Department of State:

DEPARTMENT OF STATE
Division of Licensing Services
P.O. Box 22001
Albany, NY 12201-2001

(518) 474-4429
Fax: (518) 473-6648
Web site: www.dos.state.ny.us

 

New York State Disclosure Form for Buyer and Seller

THIS IS NOT A CONTRACT

New York State law requires real estate licensees who are acting as agents of buyers and sellers of property to advise the potential buyers and sellers with whom they work of the nature of their agency relationship and the rights and obligations it creates. This disclosure will help you to make informed choices about your relationship with the real estate broker and its sales associates.

Throughout the transaction you may receive more than one disclosure form. The law requires each agent assisting in the transaction to present you with this disclosure form. A real estate agent is a person qualified to advise about real estate.

If you need legal, tax or other advice, consult with a professional in that field.

Disclosure Regarding Real Estate Agency Relationships

Seller’s Agent
A seller’s agent is an agent who is engaged by a seller to represent the seller’s interest. The seller’s agent does this by securing a buyer for the seller’s home at a price and on terms acceptable to the seller. A seller’s agent has, without limitation, the following fiduciary duties to the seller: reasonable care, undivided loyalty, confidentiality, full disclosure, obedience and duty to account. A seller’s agent does not represent the interests of the buyer. The obligations of a seller’s agent are also subject to any specific provisions set forth in an agreement between the agent and the seller. In dealings with the buyer, a seller’s agent should (a) exercise reasonable skill and care in performance of the agent’s duties; (b) deal honestly, fairly and in good faith; and (c) disclose all facts known to the agent materially affecting the value or desirability of property, except as otherwise provided by law.

Buyer’s Agent
A buyer’s agent is an agent who is engaged by a buyer to represent the buyer’s interest. The buyer’s agent does this by negotiating the purchase of a home at a price and on terms acceptable to the buyer. A buyer’s agent has, without limitation, the following fiduciary duties to the buyer: reasonable care, undivided loyalty, confidentiality, full disclosure, obedience and duty to account. A buyer’s agent does not represent the interest of the seller. The obligations of a buyer’s agent are also subject to any specific provisions set forth in an agreement between the agent and the buyer. In dealings with the seller, a buyer’s agent should (a) exercise reasonable skill and care in performance of the agent’s duties; (b) deal honestly, fairly and in good faith; and (c) disclose all facts known to the agent materially affecting the buyer’s ability and/or willingness to perform a contract to acquire seller’s property that are not inconsistent with the agent’s fiduciary duties to the buyer.

Broker’s Agents
A broker’s agent is an agent that cooperates or is engaged by a listing agent or a buyer’s agent (but does not work for the same firm as the listing agent or buyer’s agent) to assist the listing agent or buyer’s agent in locating a property to sell or buy, respectively, for the listing agent’s seller or the buyer agent’s buyer. The broker’s agent does not have a direct relationship with the buyer or seller and the buyer or seller can not provide instructions or direction directly to the broker’s agent. The buyer and the seller therefore do not have vicarious liability for the acts of the broker’s agent. The listing agent or buyer’s agent do provide direction and instruction to the broker’s agent and therefore the listing agent or buyer’s agent will have liability for the acts of the broker’s agent.

Dual Agent
A real estate broker may represent both the buyer and seller if both the buyer and seller give their informed consent in writing. In such a dual agency situation, the agent will not be able to provide the full range of fiduciary duties to the buyer and seller. The obligations of an agent are also subject to any specific provisions set forth in an agreement between the agent, and the buyer and seller. An agent acting as a dual agent must explain carefully to both the buyer and seller that the agent is acting for the other party as well. The agent should also explain the possible effects of dual representation, including that by consenting to the dual agency relationship the buyer and seller are giving up their right to undivided loyalty. A buyer or seller should carefully consider the possible consequences of a dual agency relationship before agreeing to such representation.

Dual Agent with Designated Sales Associates
If the buyer and seller provide their informed consent in writing, the principals and the real estate broker who represents both parties as a dual agent may designate a sales agent to represent the buyer and another sales agent to represent the seller to negotiate the purchase and sale of real estate. A sales agent works under the supervision of the real estate broker. With the informed consent of the buyer and the seller in writing, the designated sales agent for the buyer will function as the buyer’s agent representing the interests of and advocating on behalf of the buyer and the designated sales agent for the seller will function as the seller’s agent representing the interests of and advocating on behalf of the seller in the negotiations between the buyer and seller. A designated sales agent cannot provide the full range of fiduciary duties to the buyer or seller. The designated sales agent must explain that like the dual agent under whose supervision they function, they cannot provide undivided loyalty. A buyer or seller should carefully consider the possible consequences of a dual agency relationship with designated sales agents before agreeing to such representation.

This form was provided to me by ________________________________________(print name of licensee)

of _____________________________________(print name of company, firm or brokerage), a licensed real estate broker

acting in the interest of the:

(__) Seller as a (check relationship below)                                               (__) Buyer as a (check relationship below)

       (__) SELLER’S AGENT                                                                        (__) BUYER’S AGENT                
       (__) BROKER’S AGENT                                                                      (__) BROKER’S AGENT

                                              (__) DUAL AGENT
                                              (__) DUAL AGENT WITH DESIGNATED SALES AGENTS

If dual agent with designated sales agents is checked: ___________________________ is appointed to represent the buyer;
and _______________________________________ is appointed to represent the seller in this transaction.

(I)(We) ____________________________________________ acknowledge receipt of a copy of this disclosure form:

Signature of {  } Buyer(s) and/or {  } Seller(s):

                                                                                              

                                                                                  

                                                                                               

                                                                                  

Date:                                                                                       

Date:                                                                        

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Real Estate General Information
Location:
New York Suffolk County Babylon Babylon
Tags:
agency disclosure for new york
real estate disclosure
sellers agent
buyers agent
brokers agent
dual agent
dual agency
real estate
ny

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
570,050
Bill Gillhespy
16 Sunview Blvd - Fort Myers Beach, FL
Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos

Morning Jackie,  We don't have that requirement in our state.  We had something similar in the past and many buyers were very reluctant to sign the form.

Mar 13, 2010 08:34 AM #1
Rainer
84,708
Andrew J. Lenza
Coldwell Banker Residential Brokerage - Holmdel, NJ

In New Jersey there is some confusion if the Consumer Information Statement disclosure requires a signature. The licensee is required to explain the agency relationships, but John Doe's John Hancock isn't necessary (it becomes proof of the act of dsclosing). 

So yes, a sure-fire way to illustrate compliance is to get the consumer's signature.

I no longer ask they sign the form. I tear off a piece of paper, Post-it or a napkin and scribble "CIS" and ask that they initial underneath. Then I say, "now how could this ever be confused for a contract?"

Staple the odd end to the disclosure. I move on ;-)

Mar 13, 2010 08:35 AM #2
Rainmaker
239,444
Scott Guay
Berkshire Hathaway Home Services PenFed Realty - Ocean Pines, MD
Associate Broker. Ocean City and Ocean Pines MD

We have a very similar form and rules in Maryland. Consumers need understand it is to their benefit to understand agency.

Mar 13, 2010 08:37 AM #3
Rainmaker
746,206
Jackie Connelly-Fornuff
Douglas Elliman Real Estate in Babylon NY - Babylon, NY
"Moving at The Speed of YOU!"

Hi Bill, Tell me about it! New York decided a long time ago to have this form. Years ago, no one knew who was working for whom and a lot of shady things happened to sellers. Agents were telling buyers what the seller's bottom line was and other things that went against the seller. I'm glad we have it but sometimes it's like pulling teeth to get it signed. It clearly states it is not a contract.

Mar 13, 2010 08:38 AM #4
Rainmaker
746,206
Jackie Connelly-Fornuff
Douglas Elliman Real Estate in Babylon NY - Babylon, NY
"Moving at The Speed of YOU!"

Hi Andrew, we can't do that. It would make life easier though :)

Hi Scott, You got that right! Everyone has the right to know about who works for whom.

Mar 13, 2010 08:39 AM #5
Rainmaker
2,166,788
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

Some states require agency disclosure at the first scheduled appointment. Open houses are not scheduled appointments for that requirement.

Mar 13, 2010 08:39 AM #6
Rainmaker
746,206
Jackie Connelly-Fornuff
Douglas Elliman Real Estate in Babylon NY - Babylon, NY
"Moving at The Speed of YOU!"

Hi Roy, in New York it's about first substantial contact, not appointments. This is what we have to do at open houses.

Mar 13, 2010 08:42 AM #7
Ambassador
686,953
Charita Cadenhead
Keller Williams Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

Our state requires disclosure but as soon as possible which usually means which dicussions normally considered confidential begin to take place.  I use to find reluctance, but I think that was when I was a new agent and didn't explain the form very well.  If they chose not to sign it, we just make a notation that they refused to sign it.  You can lead 'em to water.........

Mar 14, 2010 08:33 AM #8
Rainmaker
746,206
Jackie Connelly-Fornuff
Douglas Elliman Real Estate in Babylon NY - Babylon, NY
"Moving at The Speed of YOU!"

Hi Charita, And you can't make 'em drink. I do explain the form very well and even tell them they will get a copy right then and there. It does clearly state it's not a contract. Thanks for stopping by Charita!

Mar 14, 2010 08:35 AM #9
Anonymous
Lee Presser

I just came across this posting.

Jackie, NYS requires real estate agents to disclose agency relationship upon first substantive contact. Meeting a buyer attending an open house would not necessarily be considered substantive. For instance, if the buyer only asked a question about the dishwasher, and moved on, nothing substantive was discussed. However, if that same buyer were to ask you how negotiable the seller is or begin to tell you their life's story and about all the money thye just inherited, that would constitute substantive contact and you would have to disclose that you are the seller's agent. Furthermore, if the prospective buyer refuses to sign the form that is not a problem. In the past, I would give that buyer one form and on a second I would fill it out (without their signature) and write across the top "Refused to sign" and date it.I would file that away. At Corcoran, we have an affidavit that agents are to sign and have notarized that the buyer refused to sign the disclosure on such date. The affidavit is then kept with the file for the property. We have been assured that this meets NYS DOS requirements for disclosure.

Good luck,

Lee

Jul 21, 2010 09:21 AM #10
Rainmaker
746,206
Jackie Connelly-Fornuff
Douglas Elliman Real Estate in Babylon NY - Babylon, NY
"Moving at The Speed of YOU!"

Hi Lee, I have yet to encounter a buyer that didn't engage in a real, real estate conversation. That is a great idea about taking the form and writing Refused To Sign with the date. I do find that most buyers will sign it. Every now and then you get someone that truly thinks it's a contract even though it states: THIS IS NOT A CONTRACT.

Thank you for the great information and for taking the time to stop by and comment!

Jul 21, 2010 12:17 PM #11
Anonymous
Mike

1. So Jackie, are you saying if I am buying an apartment with no agent, and the seller's agent asks me to sign this, I do need to sign it? 

2. Obviously I am not going with an agent to save the seller some on the commission which would effectively make my offer higher than it seems. Would signing this entitle the agent to any more of the commission than they would have been entitled to if I had not signed it?

3. Finally if I do have to sign it, would I check the boxes that say "Buyer as a", "Buyer's agent" and "dual agent"?

Jun 02, 2011 06:28 PM #13
Rainmaker
746,206
Jackie Connelly-Fornuff
Douglas Elliman Real Estate in Babylon NY - Babylon, NY
"Moving at The Speed of YOU!"

Hi Mike,

Answer to #1: You should sign it. But, before signing it you have to have it explained to you in detail. The Seller's Agent (listing agent) works for the seller only. Never represents the buyer in any way. If you purchase any home through the listing agent, now there is Dual Agency. This is where the listing agent is in the middle. They do not represent the seller anymore and they do not represent the buyer.

#2: Buying any home through the listing agent does not save the seller commission. The listing agent gets the entire commission. Example: 4% total commission. 2% to the buyer/broker's agent and 2% to the listing agent. When a buyer purchases the home through the listing agent, that agent will get 4% and not share it with any other agent. The seller is not saving any money. Commission has nothing to do with the Agency Disclosure form.

#3: As a consumer, you do not check off those boxes. The agent does that. A listing agent checks off the Seller's Agent. If you hire an agent but not exclusively, then that agent checks off Broker's Agent. If you hire an agent exclusively then the Buyer's Agent gets checked off.

I hope I made this easy for you to understand :)

Jun 02, 2011 07:23 PM #14
Anonymous
Mike

I'm still a little confused.

I've now signed the contract from the seller, paid the earnest money, and am preparing the package necessary for coop board approval here in NY for the building approval. In the process of coming to a price, there was another offer which was higher but had an agent.  However, I explained to the selling agent that I did not have a broker and while there was another offer on the property, if they took mine, which was lower, but they gave back part of the commission to the seller, both the seller and the agent would end up with more money.  Therefore the agent and seller agreed and we went under contract. 

The selling agent is telling me I have to sign this form.  She has checked the following boxes on the form:

the boxes that say "Buyer as a", "Buyer's agent" and "dual agent".

I thought I was going without an agent though. Now is she trying to become my agent too?

 

Jun 06, 2011 10:29 AM #15
Post a Comment
Spam prevention
Show All Comments
Rainmaker
746,206

Jackie Connelly-Fornuff

"Moving at The Speed of YOU!"
Go Ahead, Ask Me Your Questions!
*
*
*
Spam prevention

Additional Information